Toronto-based Bragg Gaming Group has released its results for the third quarter ended September 30, 2019, reporting sequential revenue growth of 13% year-on-year against a backdrop of significant progress in its US business.
In the third quarter, the company generated revenue of CDN$10m, gross profit of CDN$4.3m, EBITDA of CDN$0.2, and a net loss from continuing operations of CDN$0.2m. These results, said the firm, culminated in strong performance for the first nine months of 2019 with revenue of CDN$28m, gross profit of CDN$12.6m, EBITDA of CDN$0.6m and a net loss from continuing operations of CDN$7.6m.
CEO Dominic Mansour, updating investors, said: “We’ve made significant progress this quarter, with our focus on B2B with ORYX driving 30 per cent revenue growth compared to Q3 2018. This resulted in a significant improvement in ORYX’s gross profit and in-turn drove ORYX EBITDA to grow by over 300% to CDN$1.2m.
“I am extremely pleased with the company’s progression over the past quarter. We’ve proven that, with our modern technology and seamless integration process, we are able to expand our operator base at a significantly faster rate than the competition. I am particularly pleased that the strong momentum of operator launches experienced in the first half of the year continued into Q3 with the successful launch of 10 new operators. We expect this momentum to further accelerate throughout Q4 with more than 14 launches in the pipeline.”
Turning to progress on its US market entry, the firm reflected on its recent partnership with Kambi Group. Under the terms of the deal it will provide casino services and unique player account management (PAM), along with Kambi’s sports betting services to operators worldwide with an initial focus on the burgeoning US market.
“This newly created partnership recently signed a deal with New York’s Seneca Gaming Corporation (SGC), which operates all of the Seneca Nation’s Class III gaming operations in western New York,” it said. “The Bragg and Kambi teams will collaborate to provide SGC with a combination of their services and products across SGC’s three New York casinos.”
Expanding on the firm’s US ambitions, Mansour noted: “Our partnership with Kambi and the initial deal with Seneca are both huge stepping stones for Bragg as we commence operations in the US and continue to expand our global reach. Our strategic focus in the US is to partner with tier-1 casinos and operators. I believe that this Seneca deal will be the first of many in the coming years, particularly as the legal landscape continues to mature.”